: Nvidia, AMD stocks fall on report of new AI chip bans from Biden administration

Shares of Nvidia Corp. NVDA and Advanced Micro Devices Inc. AMD slumped in the extended session Tuesday following a report that the Biden administration is considering a new ban of sales of AI chips to China. Late Tuesday, the Wall Street Journal reported the Commerce Department could further block sales of AI chips to China without obtaining a special license first. Nvidia shares fell after a 3.1% rise to close at $418.76, and AMD shares fell 2%, after a 2.7% gain in the regular session to close at $110.39. Both Nvidia and AMD have launched new AI chips this year. The ban would follow upon similar actions last year that threatened $400 million in Nvidia sales, but the company found a workaround in supplying a version of products that avoided the ban. At the close, Nvidia shares were up 187% in 2023, and AMD shares were up 70% for the year.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.